Wall Street snowballs, posts biggest weekly gain since US election

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Wall Street snowballs, posts biggest weekly gain since US election

On Friday, all three key indices of Wall Street shelved modest gains with S&P 500 and Nasdaq scoring their biggest weekly percentage gain since the US Presidential election, mostly buoyed up over progresses on stimulus talks alongside upsized quarterly earnings reported by a raft of big-league tech conglomerates.

On top of that, while trade-sensitive Dow and benchmark S&P 500 had notched a fifth straight session of gains, remarking their longest winning streak since August 2020, S&P 500 and Nasdaq had extended their record-setting rally for a second straight session in a row.

Wall Street balloons as investors eye trillion-dollar stimulus package

In point of fact, a downbeat US non-farm payrolls data released earlier in the day, had stepped up investors’ hope of a large-scale pandemic stimulus bill in a near-term outlook, while in an address to the nation, the US President Joe Biden had signalled a mammothlike stimulus package over the coming weeks, adding to a bullish wing to market participants’ optimism.

Nonetheless, US Labour Department data released earlier in the day had revealed that the US non-farm payrolls added 49,000 jobs last month, signalling a deepening of economic pains in the labour market. However, rekindling market participants’ hopes, the US House of Representative had passed a budgetary bill late in the day that would enable the Democrat-led US Senate to pass a whopping $1.9 trillion in additional pandemic stimulus bill without supports from the Republican lawmakers.

Citing statistics, in the day’s Wall Street closing bell, trade-sensitive Dow added 0.3 per cent to 31,148.24 and S&P 500 rose 0.39 per cent to 3,886.83, while tech-heavy Nasdaq gained 0.57 per cent to wind down the day at a record closing high of 13,856.30.

In the week, S&P 500 soared 4.65 per cent and Nasdaq rose 6.01 per cent, while Dow added 3.89 per cent and small-cap Russel 2000 surged 7.7 per cent, marking up its largest weekly percentage gain since June 2020. Meanwhile, addressing to investors’ optimism over a mass-scale fiscal package in a near term, President of a Toronto-based investment advisory firm Alan B.

Lancz & Associates Inc., Alan Lancz said, “The upcoming package of stimulus is going to be big. You have a situation where there’s a lot of cash on sidelines and bonds have really underperformed, so that’s helped some sectors that have really done poorly.